The new initiative, often referred to as a "housing inventory reduction plan," empowers local governments to use loans provided by the People's Bank of China (PBOC) to buy completed but unsold apartments. These units will then be converted into or social rental homes .
According to reports, the central government is urging local authorities to utilize policy-specific loans and bonds to finance these acquisitions. This move effectively turns the state into a mega-landlord, a radical departure from the capitalist-tinged growth policies of the past. The new initiative, often referred to as a
The property crisis has created a vicious cycle. As developers run out of cash, they halt construction on pre-sold homes. This has led to a phenomenon where homebuyers, still paying mortgages on apartments that may never be finished, refuse to pay their loans. This "mortgage boycott" has rattled banks and eroded consumer confidence. This move effectively turns the state into a
Previous government efforts focused on easing credit to developers or loosening purchase restrictions for buyers. This has led to a phenomenon where homebuyers,
The new policy, championed by Vice Premier He Lifeng, encourages local governments and state-owned enterprises (SOEs) to purchase millions of completed but unsold homes. These properties are intended to be repurposed into , a dual-track effort to clear a massive inventory glut while addressing urban housing needs. Key components of the multi-pronged rescue package include: